Changing Trends In Retail Sector

Synopsis

Historical studies show that growing disposable income of a consumer and technological developments are responsible for the changing retail formats. This change might take a decade or more (United States) but it can occur rapidly as well (Thailand).This paper has helped in understanding the factors that affect the retail landscape, historical stages of changes in retail in the developed markets, changing trends of retail sector in Pakistan, change in consumer’s lifestyle and demographics. At last it overviews the future of Pakistan’s retailing sector. Retail trend can be learnt in terms of the formats ranging from the traditional ones to the modern ones. Consumer’s changing lifestyle, growth in disposable income, and developing technology

The advancements in transport and communication provide a rapid movement of goods and help in lowering inventory levels. In 1880’s, the department stores and mail-order houses used advances in telegraph and railroads to exploit the opportunity of economies of scale and scope while in 1990’s, the global retailers used modern technology and distribution system for the same purpose. The internet, scanner technology, market research, and data obtained from credit cards provide various opportunities for retailers such as economies of scale and scope. The retail stores like Tesco and Wal-Mart price the products lower as compare to their products and this is one of the reasons that people consider modern format retail stores and other reasons include: large variety of products, all ranges available under one roof, and opportunity of “one-stop shopping”. These modern stores have some drawbacks as well and the major one is that they are located far from the city centers. It is critical for both consumers and suppliers though rents of property are less

Economic growth had an impact on the buying behavior of the customer such as: Their spending power increased, they desired for convenience, etc. The transportation and communication networks provided the opportunities for economies of scale and scope. The wholesalers (large ones) dominated until 1880. The rise of large wholesalers was followed by the advent of railroads and telegraph in the 1840s which increased speed and reduced uncertainty and wholesalers played a main role in introducing and developing the department stores (modern) and mail-order houses. The retail sector started developing with the increase of modern departmental stores in 1850s. The first major development in retail was during the 1850s, with the rise of the modern department. The stores started with clothing items followed by furniture, jewelry, books, etc. In 1880s retailing became more successful than wholesaling and in 1900; the department stores grabbed the market. The second major development was the growth of mail-order houses in early 1870’s. It sold products through catalogue and parcel post. Earlier, the wholesalers with innovative approach sold the products through catalogues by salesperson. The third major development was the establishment of chain stores located in small towns and at the